Diagonal not for sale, says 2e2

2e2's decision to maintain the Diagonal brand and distinct organisational structure is not an indication that the business will be sold, the firm has insisted. As revealed last week, the integration of Morse is progressing as 2e2folds the business units into its operating divisions, consolidates re

2e2's decision to maintain the Diagonal brand and distinct organisational structure is not an indication that the business will be sold, the firm has insisted.  

As revealed last week, the integration of Morse is progressing as 2e2 folds the business units into its operating divisions, consolidates real estate and appoints to managerial roles.

However, while portals and collaboration business at Morse subsidiary Diagonal was combined with 2e2's business applications unit, the SAP consultancy element retained its branding and sat distinct from the other teams in the group, leading to industry talk that it may be sold.

2e2 group business development director Nick Grossman today scotched those suggestions, telling MicroScope: "There is absolutely no plan to sell the SAP [Diagonal] business."

"The reason we rebranded the portal and collaboration piece is becasue we already offer that technology and service in some shape or form.

"We don't sell SAP and if you mention Diagonal to customers they think SAP, therefore the brand has particular value in that market," he added.

Cleary 2e2 is mindful of Morse management's previous mistakes when they introduced the One Morse strategy, integrating the services portfolio of the different businesses to ease cross selling and dumping the Diagonal brand. 

This failed as one member of the infrastructure services division could not get a handle on the different sales techniques and cycles involved in the SAP unit. The structure was overhauled when CEO Mike Phillips joined the board.

The Morse brand disappears in the UK later this week but will live on overseas, where 2e2 has no presence.

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